Service tax on feeds processing fee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2015
Dear Member(s)

A pvt ltd comp has entered into contract for give plant to other party to manufacture of Feed/ cattle feeds(tax free) & will receive processing fee (as rent of plant )

please give me ur valuable advice, what would be service tax liability of comp.(processing fee receiver)

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

14 November 2015 Service tax applicable on renting of plant and machinery.

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2015

Thanks for ur kind advice..

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2015 but the other party received labour/ all type of assistance from comp.(1 st party)

So whether is cover as work contract.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 November 2015 Then it amount to manufacturing for which no service tax payable.

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2015 Please brief it sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 November 2015 No service tax applicable on manufacturing activity only excise duty applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2015 but here Manufacturing Activity done by other Party & will pay proceesing fee against usage of labour & Machinery.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 November 2015 It is a manufacturing activity even such activity carried out by job worker is exempted from service tax. Refer serial No. (f) of negative list.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now